Income tax calculator Canada
Estimate federal and provincial income tax, CPP, EI, and take-home pay using Canadian tax context.
Estimate federal and provincial income tax, CPP, EI, and take-home pay using Canadian tax context.
Estimate federal and provincial income tax, CPP, EI, and take-home pay using Canadian tax context.
Estimate your 2026 federal and provincial income tax. Uses the new 14% lowest bracket — down from 15% — saving every Canadian up to $574/year. Want to see how an RRSP contribution affects your refund, or check your marginal rate?
This calculator is checked against the CRA's published payroll deduction formulas whenever brackets change, and you can reproduce the check yourself: run the same salary through CRA-certified tax software and the federal-plus-provincial figure should land within a few dollars, with the drift coming from CPP rounding. The 2026 update, including the new 14% first federal bracket, is reflected below.
An $85,000 gross salary in Ontario in 2026 produces roughly:
This excludes provincial surtaxes and the Ontario Health Premium (~$600 at this income).
Three things changed at the federal level for 2026 that most calculators still haven't updated:
Primary source: CRA — Federal income tax rates for current & previous years
Starting in 2026, the lowest federal income tax bracket dropped from 15% to 14%. This applies to the first $57,375 of taxable income. Every Canadian taxpayer saves up to $574/year from this change alone. Many online calculators still show the old 15% rate — this one is updated for 2026.
Canada has two parallel tax systems. The federal government collects income tax from every resident at the same five-bracket schedule (14%, 20.5%, 26%, 29%, 33%). Each province then adds its own brackets on top — so your "marginal rate" is really federal rate + provincial rate combined. In Ontario at $80,000, that's 20.5% federal + 9.15% provincial = 29.65% on the next dollar.
This is why moving from Ontario to Alberta can change your take-home pay even on the same gross salary. Quebec is a special case — they collect their own provincial tax separately, plus they administer QPP instead of CPP and have their own QPIP parental insurance, so Quebec residents actually file two tax returns. This calculator approximates Quebec at federal rates only and won't be exact for QC residents — read our guide to marginal rates for more on combined federal-provincial math.
CPP (Canada Pension Plan) takes 5.95% of every dollar between $3,500 and $71,300. Above $71,300, a second tier called CPP2 takes 4% up to $81,200. Both are matched by your employer and feed your future CPP retirement benefit — see our CPP calculator for what those contributions become at age 65.
EI (Employment Insurance) takes 1.58% of every dollar up to $65,700, capped at $1,038 per year. Self-employed Canadians don't pay EI by default but can opt in for parental and sickness benefits.
We strip the math down to the universal pieces every salaried Canadian deals with. We do not include: provincial surtaxes (Ontario's 20%/56% surtax on tax over $5,710/$7,307), the Ontario Health Premium ($60–900), Quebec-specific QPP/QPIP (Quebec residents should expect ~$2,000 higher deductions), non-refundable credits beyond the BPA (medical, donations, tuition transferred to a parent), refundable credits (CCB, GST/HST credit, climate action incentive), and dividend or capital gains income (use our capital gains calculator for those).
For a real return, use CRA's certified NETFILE software — but for ballpark planning, this is accurate within ±2% for most employment scenarios.
This is an estimate only. Does not include provincial surtaxes, Ontario Health Premium, Quebec-specific deductions (QPP/QPIP), or credits beyond the basic personal amount. Consult a tax professional for exact figures.